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Analyst Note

Samsung Well Positioned to Rebuild Brand Image

Samsung failed to quickly resolve the Note 7’s battery problems in late 2016, and the company experienced large declines in Brand Image ratings in the J.D. Power 2017 Full-Service Smartphone Satisfaction Study,SM fielded between October and December 2016. Problems with the device—and the replacement Note 7s Samsung issued—gave rise to a spree of bad publicity, and the many news reports, YouTube videos, and airport announcements took a toll on Samsung’s Brand Image. As a result of Brand Image declines, Samsung may have more difficulty recruiting new customers in the short term.

Fortunately for the company, its customer satisfaction has remained high and its users are still among the industry’s most loyal customers and strongest brand advocates. Therefore, Samsung is well positioned to reverse recent Brand Image declines, especially if the Note 8 lives up to its rumored codename of “Great.”